Albert Einstein once said that one of the most powerful forces in the universe is ‘compound interest.’ If the mad-haired scientist was still alive today, he might think the same about ‘debt consolidation’. But what is it?
In easy terms, debt consolidation lets you bundle all your debts into one basket so you can deal with it in one-go. So, instead of having to visit different banks to pay different loans, you’ll be able to settle your monthly repayments with one bank. The ultimate goal is to let you live your life debt-free as fast as possible.
Here is where Citibank comes in.
Citibank Home Loans now allows you to consolidate all your loans into one account. When you do that with Citibank, you’ll also get a single, lower interest rate, a shorter repayment period and a reduced monthly installment amount. Which means, you can wrap your housing, car, credit card and personal loans into one nicely packaged box to deal with.
Plus, Citibank offers you two options to settle your loan. Both options equally save you time and money. Read on to find out how Citibank can help.
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Let’s say you have a home loan of RM300,000, a car loan of RM100,000 and a personal loan of RM20,000, which puts your total loan amount to RM420,000. As you can see from the table above, each of your loans have its own interest rate, monthly installment and repayment period.
In total, once the interest rate is factored in, your total monthly installment is RM5,098.24 with a total payback of RM531,383.77.
Here is what happens once you consolidate your loans into one basket:
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Now you have a single interest rate and a single loan repayment period. All you need to pay every month is RM4,352.81 as opposed to RM5,098.24. It also brings your total payback amount from RM531,383.77 to RM522,337.58, saving you RM9,046.19.
However, Citibank also gives you the option to pay your original monthly installment at RM5,098.24 to shorten your loan repayment period. Here’s how:
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In the end, instead of paying for 120 months, you now only need to service your loan for 99 months. You get to live out of debt 21 months earlier, and we know that is always better to live debt free.
If you decide to consolidate your debt with Citibank Home Loans between now and June 30, 2012, you’ll also get to enjoy a quick getaway at Westin Langkawi Resort & Spa. Terms and conditions apply.
Don’t wait to get started. For more information, get in touch with a Citibank Home Loan Specialist by clicking here.
This is an advertorial for Citibank
yes, but one bank in the city has a very reputation of activating the small prints
paul, when u starting to sell houses?
I wonder how much citibank paid to paultan for this entry…..maybe interest free loan for his new car….he he
paultan also need to cari makan. If not, who’s writing all these good stuff for u, charity? At least slightly related to car loan!
sellout!!lol
Eh, kasi slack sikit la macha. And you work for air and sunshine alone? Don’t think the pt team does. Ads bayar gaji lah and keeps things running. Free news lu orang mau complain .. guna otak la
The “This is an advertorial for Citibank” disclaimer is there for all to read.
So what’s the problem?
Cheers :)
saving RM 9,046.19???… but pls consider other hidden cost to refinance. i.e legal fee, valuation fee, documentation, insurance.. which can eat up all this so call ‘saving’.
true! to get a new MRTA for RM250k house already costs RM8k…
to refinance from 5% to 4.5% rate is stupid… it will make more sense if your homeloan currently has much higher rate, say 8% and above.
They’ve also “conveniently” left out the fact that 4.5% is an interest pegged to BLR, and when (not if) BLR increases, your loan repayment amt also increases, ergo no savings from consolidating.
This sort of marketing without transparency is appalling, especially coming from Citibank.
so how bout our car grant & release letter?..suppose we can have it after 9 years, now only can get it after 10 years?..am i correct?
now paul tan is a financial broker. how sweeett…
Suppose i take a 10 years total loan (house + car). After 5 years I decide to sell my car. Do I have to settle the car’s part of the loan? Otherwise, technically, I’d still be paying for a car which I no longer own.
Why house loan article appear in car blog? If talking abt selling Proton’s Shah Alam plant still relevant :)
this is bcos bank are facing difficulty in approving hirepurchase if the buyer is burden with other commitment like housing loan or other loan due to the new BN guideline..
so by using Citibank propose plan, service to debt ratio looks better and chance of buyer getting a car is higher..
so i think it is relevant to this blog
Citibank is hoping to attract more sales this way, rather than keep on rejecting car hirepurchase..
While I agree that a refinance can help significantly, be careful when you read the marketing speak. Interest rate for cars for example is different from APR used in home loans. The simplified example up there is leaving out a lot of hidden fees, etc.
Looks good to me.
If you default, do they repossess your house and car at the same time?
In hard times, you can choose to give up your car to save your house but with this 1Loan, how?
haha i had to scroll twice up to see if this is Paultan or what. Btw, i wish to blabber a bit, boleh eeee
I do believe someday property market in Malaysia will have it dawn, bursting like a US & Europe market. the market value no longer determine by demand and location , but by BROKER HARAM/org tengah.
these guys don’t even knew The Board of Valuers, Appraisers and Estate Agents Malaysia (BVAEA) exist!!! BVAEA had done nothing to protect Malaysian consumer from these Unregistered Agent.. and they call themselves part of Professional profession??? i never see any member of BVAEA make any statement or move / suggestion etc especially to parliament so that enforcement is taken to protect a buyer.
instead they just let it be and enjoy their share..how..
well, let say property A market value @ RM300,000. The owner wish to sell it ASAP and leave it to Registered Estate Agency. Since this field is a professional profession, every fees and charge had been determine by their Standard of Valuation. so for housing if im not mistaken, it is max. 3% of Market Value (MV) + operation cost (printing, travel, ads etc). and the Registered guys supposed to consult the owner on the asking price base on market value. so let say he owner agreed to offer on MV
MV = RM300k
Asking price = RM300k
Fee & charge (3% + operation cost) = RM10k
so, total spent by Malaysian buyers = RM310k
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whilst unregistered guys can charge any amount they wish and they can take any deposit from anyone interested and not having any paperwork!! he dont even have honour any aggreement coz he is not any member or any registered bodies..so hmm
i knew a plot of land which MV @ RM150k. the owner in dire need of money, so he’s willing to accept any offer above 110k.
and this greedy pig offer himself to sell it for him with a condition, the owner get his asking price and he get the rest / whats left of it. what he do is :
MV = RM150k
Owner want = RM150k
he put ads asking price @ RM170k (nego)
– after 2 days he received quite a lot of call potential buyer
so he mark up a bit more @ RM180k (nego)
– still he received more call,
and he mark up some more @ RM220k (nego)
– he had not any caller, but he still persistence.. he leave his add for almost 5 days at the bus station, traffic light, internet, etc
and at the end of 5 days bang, using the same adds he erase RM220k tag price and jot down new asking price saying …… RM200k (firm & fixed)
walla.. he make a gross profit almost 34% from actual MV!!!! which is 11 times higher.
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and sad news is those Dysfunctional-Professional BVAEA knew about this, but done nothing coz they said, people willing to pay price, so that must be the market value..whilst in fact people are force to accept the price (especially for a piece of property in city area) or they will get none!!!
and the next month those selling price RM200k for property A will be display by JPPH (Jabatan Penilaian & Pentaksiran Hartanah Malaysia) in a transaction data format (statistic and number that show what, how much, the selling price etc), and up for grab for Private Valuation & Agency company to used it LEGALLY as their tools of calculation & guidelines in order to determine neighbourhood Market Value!!!!!
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so, 1st day MV = RM150k
32d day MV = RM200k
what if the same guys /unregistered bastrd is appoint by nearer estate owner to sell their shop, can u guess how much he will charge and directly influence new Market Value?????
p/s : i’m not sure, but i suspect BVAEA let these culprit onto themselves coz they also had the benefit, NEW & HIGHER MV means HIGHER FEE, thus HIGHER revenue!!!! Nevermind the Rakyat!!! just leave em’ enjoy their new ratio overcharge-house:super-slow hike-salasy/annum.
GOV PLEASE REGULATE & ENFORCE THE ALREADY TABLED LAW< PROTECT US FROM THESE GREEDY-pig!!!
imma fresh grad about to start working n need to learn bout investing on properties. pls accept me as ur student, sifu! (kneeling)
haha..10q
well, how bout u bought urself Property Market Report 2011 (for ur state from local JPPH) 1st. there’s a lot of data in it which also shown the graph and potential value for certain area in a future.
and equip it along with JUPEM map (better soft copy, easy to carry & conceal), so u can trace any lot n plot of property which u wish to bought in a future.
pick ur target (base on locality, price & potential..check out local authority zoning as well. u dont wana stuck buying non-potential property, once u bought it – thats it. nothing mo u can do except prolong whatever its registered grant usage saying je!!), hire ur men, tell em to speculate to people around, especially rivals.. if u wanna buy it = tell em’ everything that is bad about the land. if not decrease, the MV might stay the same coz less people interested into buying it (save a lot already, mana ada tanah yg jatuh mendadak harga!!). but if u wanna sell it = make a story to potential buyer that the goverment had plan to do this and that and relate it to bigger vision such as ECER, ISKANDAR, NCER etc, show em brochure etc, people are getting smart, they wont believe u just like that. it’s hard to trace genuineness of the story coz every land in certain region fall into certain economic zoning, which make any future planning could be anywhere in it.. usually, u can sell ur land at least 15% higher than MV..
p/s but don’t ever lie coz once ur name tainted. say bye bye to property investment. whats left is u becoming con man je lah. all my tips abovemention are not lying, but merely state the obvious and what not so it’ll be crystal clear for em, ..and of coz to ur favour hehe.
Paul, I need to learn from you now..
how many horsepower does this loan offer? hahaha
Compound interest and banking systems are humans biggest evil, capitalistic greedy system we oulselves created..
not we lah — THEY.
you know who i’m talkin about.
every country, rich or poor, has em.
rich, well-connected parasitic scum working the system
without producing anything that contributes to actual growth.
nope, only financial sleight of hand.